Procurement of 6 Patrol Boats for Malaysian Royal Navy

Procurement of 6 boats was not constructed well due to poor planning, implementation and oversight. Resulted in delays, but also additional cost of RM1.4 Billion according to Attorney General Audit report 2006

Disclosure Timeline

28 Jun, 2007 - Laporan Ketua Audit Negara Mengenai Aktiviti Kementerian Jabatan Kerajaan Persekutuan Tahun 2006 (Audit Department Malaysia)

Directly implicated: Najib Razak

Notes

Appointed supplier only had small shipyard and did not have any experience other than building small tugboats and police boats. Financial problems and other related problems was main cause of delayed project deliverable.
Payment terms only on condition of confirmation of order. Terms did not consider requirements of Royal Navy
Government paid RM4.26 billion including RM1.07 billion in advance, despite physical building progress of the 6 boats only worth RM2.2 billion.
Payments for RM943.46 million could not be verified due to missing or lost vouchers.

Source: LAPORAN KETUA AUDIT NEGARA MENGENAI AKTIVITI KERAJAAN PERSEKUTUAN TAHUN 2006

Subitems

Laporan Ketua Audit Negara Mengenai Aktiviti Kementerian Jabatan Kerajaan Persekutuan Tahun 2006 (Issue Source)